Star Housing Finance Limited has announced a crucial board meeting scheduled for September 12, 2025, to discuss and potentially approve various fund-raising initiatives. The company aims to bolster its financial resources through a range of instruments, signaling a strategic move to strengthen its capital position.

Key Highlights

• Board Meeting Date: September 12, 2025
• Primary Agenda: Exploring fund-raising options
• Potential Methods:
  • Preferential allotment
  • Rights issue
  • Qualified Institutional Placements (QIPs)
  • American Depositary Receipts (ADR)
  • Global Depositary Receipts (GDR)
  • Foreign Currency Convertible Bonds (FCCB)
  • Other securities or a combination thereof

Fund Raising Strategy

The board will consider augmenting the company's financial resources by issuing equity shares or convertible instruments. This initiative may be executed in multiple tranches, allowing for a phased approach to capital raising. The flexibility in the proposed methods suggests that Star Housing Finance is keeping its options open to optimize its fund-raising strategy based on market conditions and investor appetite.

Trading Window Closure

In compliance with SEBI regulations and the company's internal Code of Conduct, Star Housing Finance has implemented a trading window closure:

• Effective: Immediately
• Duration: Until 48 hours after the conclusion of the board meeting
• Applicable to: Directors, promoters, designated persons, connected persons, and their immediate relatives

This measure is designed to prevent insider trading and ensure fair market practices during this sensitive period.

Implications for Investors

The upcoming board meeting and potential fund-raising activities could have significant implications for Star Housing Finance's future growth strategies and financial structure. Investors and market watchers will be keenly awaiting the outcomes of this meeting, as it may influence the company's market position and share value in the near term.

Star Housing Finance Limited has stated that this information is available on the company's official website ( www.starhfl.com ) for public reference. As the financial landscape continues to evolve, the company's proactive approach to exploring diverse funding avenues demonstrates its commitment to maintaining a robust capital base and supporting its operational and growth objectives.

Star Housing Finance Limited (SHFL) has reported a 16% year-over-year growth in Assets Under Management (AUM) to ₹546.58 crore for the first quarter of fiscal year 2026. The housing finance company, focused on serving first-time homeowners in semi-urban and rural India, shared its financial results in a recent earnings call.

Financial Highlights

Operational Updates

Star Housing Finance has expanded its presence, now serving over 5,400 borrowers through a network of 37 branches across multiple states. The company maintains its focus on affordable housing in semi-urban and rural markets, with average loan sizes ranging from ₹8 lakhs in rural centers to ₹10 lakhs in semi-urban areas.

Asset Quality

These metrics reflect the company's emphasis on credit selection, underwriting discipline, and collection effectiveness.

Funding and Capital

• Total borrowings stood at ₹391.91 crore, sourced from a diversified mix of banks and financial institutions.
• The debt-to-equity ratio as of June 30, 2025, was 2.69 times.
• The Board has approved a fundraise through the issuance of non-convertible debentures of up to ₹50 crore to support growth initiatives.

Strategic Initiatives

SHFL has undertaken several strategic moves to strengthen its market position:

1. Applied for direct listing on the National Stock Exchange (NSE)
2. Initiated a co-lending partnership with Vastu Housing Finance
3. Received Board approval for increasing the authorized share capital to ₹125 crore from ₹50 crore, subject to shareholder approval

Management Commentary

Kalpesh Dave, CEO of Star Housing Finance, commented on the company's performance, stating, "We are hopeful to rebuild the momentum which we had lost in Q3 and Q4 of the previous fiscal year. We are looking forward to making the most of the upcoming festival season and harvest period, which typically see increased activity in our target semi-urban and rural areas."

Outlook

Despite facing challenges in the previous fiscal year, particularly in the second half, Star Housing Finance remains optimistic about its growth prospects. The company is focusing on:

• Building a high-quality asset base
• Expanding reach while maintaining stringent underwriting standards
• Enhancing digital capabilities to drive operating leverage and reduce unit costs

As the affordable housing sector continues to be a key focus area for the Indian government, Star Housing Finance is well-positioned to capitalize on the growing demand for housing finance in semi-urban and rural markets.